The weekly market report is provided by Gladius Commodities of Lagos, Nigeria.
CHAD
Perenco acquired Glencore’s corporate entities holding its entire upstream oil interests in Chad. The acquisition makes Perenco the ultimate sole owner of PetroChad Mangara – the operator of the Mangara, Badila and Krim oil fields in the Doba Basin, southern Chad. The Badila and Mangara fields represent two large oil reservoirs where production began in 2014, still holding significant untapped potential while Krim is an undeveloped discovery. Operations will now recommence with an expected return to previous production rates of 16,000 barrels of oil per day (bpd) in the near term.
Oil production from the Badila and Mangara fields is exported via the Doba oil pipeline to Kribi, Cameroon. Perenco has been operating in Central Africa since 1992.
NIGERIA
The Nigerian National Petroleum Corporation (NNPC) stated that it is focusing on achieving energy sufficiency for the country in 2026. NNPC Group Managing Director (GMD), Alhaji Mele Kyari disclosed this when delivering a keynote address at the Global Energy Summit organized by Reuters in New York, the United States. The GMD stated that Nigeria was ready to rally investors to develop its gas sector. Although the country currently imports almost 100% of its fuels, NNPC said its priority is to be zero-dependent on imported energy, both primary and secondary, positioning itself as a net exporter of the products in the next four years.
Kyari reiterated that the country has already set and is working towards 2060 to achieve a net-zero emissions target. He also pointed out that the company’s ambition is to see 100% of the population with access to electricity and a target of over 70 million British thermal units per capita consumption by 2035. Furthermore, he stressed that natural gas will be the backbone of the NNPC’s play in the hydrogen economy, noting that on the supply side, it will be involved in supplying clean hydrogen as a major alternative energy resource to hydrocarbons. On the demand side, Kyari declared that the NNPC will be investing in the transportation sector by facilitating the fuel cell vehicle demand and supply chain as an alternative to conventional electric vehicles.
The Minister of State for Petroleum Resources, H.E. Chief Timipre Sylva, said the Federal Government has been deliberately implementing gender-friendly policies to promote women’s inclusion in the oil and gas industry. The Federal Government and the Nigerian Export-Import Bank (NEXIM) have signed a $40 million intervention fund for women in the oil and gas sector. This was disclosed at the Nigerian Content Development and Monitoring Board (NCDMB) second edition of the Women in Oil and Gas Industry, Diversity SWG conference in Lagos. H.E. Chief Sylva said the fund was made available through the NCDMB-NEXIM Bank collaboration in 2021 and was in addition to the already existing $300 million Nigerian Content Initiative Fund made available to both women and men who meet the criteria. The Bank of Industry is responsible for the management of the funds.
GLOBAL
On Thursday June 16, oil prices rose after the U.S. announced new sanctions on Iran and as energy markets remained focused on supply concerns that have sent prices soaring. The U.S. West Texas Intermediate (WTI) crude futures ended up $2.27, or 2%, at $117.58, while the Brent futures settled at $119.81, up $1.30, or 1.1%. The U.S. Energy Information Administration weekly report showed crude oil inventories build of 1.956 million barrels for the week ending June 10. Crude supply data from the American Petroleum Institute released on Tuesday showed a build of 0.736 million barrels.
Investors are now assessing tight supplies and robust demand as the U.S. imposed sanctions on Russian oil. The International Energy Agency said it expects demand to rise further in 2023, growing by more than 2% to a record 101.6 million bpd, exceeding pre-COVID-19 levels. Optimism that China’s oil demand will rebound as it eases COVID-19 restrictions also supports prices.
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